Ferrari and Stellantis chair John Elkann has now negotiated a settlement with Italian authorities. As part of the settlement he will pay €183 million (£159 million) to settle a long-standing tax dispute. He and his brothers were accused of failing to report at least €1 billion in assets and €248.5 million in income. These figures are the result of their inheritance of the estate of their grandmother Marella Caracciolo, who passed away in 2019.
The case originates from an extended family feud, resulting in the inheritance of their grandfather, Gianni Agnelli. I knew he had transformed Fiat from an old line local car company into an international titan long before he left this world more than two decades ago. Elkann, the eldest child of Margherita Agnelli, suddenly has a lot on his plate. As part of the settlement, he will serve one year of community service.
Elkann’s attorney, Paolo Siniscalchi, assured in a statement that the settlement does not constitute an admission of liability. He stated, “John Elkann’s request for probation must be viewed in this context and does not entail, just as the settlement with the tax authorities does not, any admission of responsibility.”
The tax dispute has focused on assertions that Eli Elkann and his brothers did not declare their wealth. In response, they claim that is warranted because their grandmother was a Swiss citizen. Siniscalchi pointed out that, in fact, this result is in line with previous requests to dismiss charges for Elkann’s sister, Ginevra, and brother, Lapo.
Elkann has been Fiat’s largest shareholder since 1997 when he first joined its board. Until July 2020, he was executive chair of the firm. He was instrumental in managing the family operation through its evolution and growth.
As this case reaches its conclusion, Siniscalchi remarked on the desire to resolve matters swiftly: “This painful affair to a swift and definitive close.”